F.N.B. Corporation (FNB)

Regional banking company F.N.B. Corporation (NYSE:FNB) announced better-than-expected revenue in Q3 CY2025, with sales up 10.6% year on year to $457 million. Its non-GAAP profit of $0.41 per share was 9.7% above analysts’ consensus estimates.

Company Overview

Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE:FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

F.N.B. Corporation competes with other regional banks operating in the Mid-Atlantic and Southeast regions, including PNC Financial Services (NYSE:PNC), Truist Financial (NYSE:TFC), M&T Bank (NYSE:MTB), and KeyCorp (NYSE:KEY).

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, F.N.B. Corporation grew its revenue at a decent 6.7% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. F.N.B. Corporation’s recent performance shows its demand has slowed as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, F.N.B. Corporation reported year-on-year revenue growth of 10.6%, and its $457 million of revenue exceeded Wall Street’s estimates by 2.6%.

Net interest income made up 78.8% of the company’s total revenue during the last five years, meaning lending operations are F.N.B. Corporation’s largest source of revenue.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

Topline growth alone doesn't tell the complete story - the profitability of that growth shapes actual earnings impact. Banks track this dynamic through efficiency ratios, which compare non-interest expenses such as personnel, rent, IT, and marketing costs to total revenue streams.

Investors place greater emphasis on efficiency ratio movements than absolute values, understanding that expense structures reflect revenue mix variations. Lower ratios represent better operational performance since they show banks generating more revenue per dollar of expense.

Over the last four years, F.N.B. Corporation’s efficiency ratio has swelled by 1.7 percentage points, going from 57% to 55.2%. Said differently, the company’s expenses have grown at a slower rate than revenue, which typically signals prudent management.

F.N.B. Corporation’s efficiency ratio came in at 52.4% this quarter, beating analysts’ expectations by 206.6 basis points (100 basis points = 1 percentage point). This result was 2.8 percentage points better than the same quarter last year.

For the next 12 months, Wall Street expects F.N.B. Corporation to rein in some of its expenses as it anticipates an efficiency ratio of 54.2%.

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

F.N.B. Corporation’s remarkable 8.4% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For F.N.B. Corporation, its two-year annual EPS declines of 5% mark a reversal from its (seemingly) healthy five-year trend. We hope F.N.B. Corporation can return to earnings growth in the future.

In Q3, F.N.B. Corporation reported adjusted EPS of $0.41, up from $0.34 in the same quarter last year. This print beat analysts’ estimates by 9.7%. Over the next 12 months, Wall Street expects F.N.B. Corporation’s full-year EPS of $1.47 to grow 9.2%.

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

F.N.B. Corporation’s TBVPS grew at an excellent 8% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 12.8% annually over the last two years from $9.02 to $11.48 per share.

Over the next 12 months, Consensus estimates call for F.N.B. Corporation’s TBVPS to grow by 9.1% to $12.52, decent growth rate.

Leverage is core to a financial firm’s business model (loans funded by deposits). To ensure economic stability and avoid a repeat of the 2008 GFC, regulators require certain levels of capital and liquidity, focusing on the Tier 1 capital ratio.

Tier 1 capital is the highest-quality capital that a firm holds, consisting primarily of common stock and retained earnings, but also physical gold. It serves as the primary cushion against losses and is the first line of defense in times of financial distress.

This capital is divided by risk-weighted assets to derive the Tier 1 capital ratio. Risk-weighted means that cash and US treasury securities are assigned little risk while unsecured consumer loans and equity investments get much higher risk weights, for example.

New regulation after the 2008 financial crisis requires that all firms must maintain a Tier 1 capital ratio greater than 4.5%. On top of this, there are additional buffers based on scale, risk profile, and other regulatory classifications, so that at the end of the day, firms generally must maintain a 7-10% ratio at minimum.

Over the last two years, F.N.B. Corporation has averaged a Tier 1 capital ratio of 10.5%, which is considered safe and well capitalized in the event that macro or market conditions suddenly deteriorate.

Return on equity (ROE) measures how effectively banks generate profit from each dollar of shareholder equity - a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments.

Over the last five years, F.N.B. Corporation has averaged an ROE of 7.9%, respectable for a company operating in a sector where the average shakes out around 7.5% and those putting up 15%+ are greatly admired.

We enjoyed seeing F.N.B. Corporation beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $14.80 immediately after reporting.

Updated: December 4, 2025 at 11:33 PM EST

When considering an investment in F.N.B. Corporation, investors should account for its valuation and business qualities as well as what’s happened in the latest quarter.

F.N.B. Corporation isn’t a terrible business, but it doesn’t pass our quality test. To kick things off, its revenue growth was uninspiring over the last five years. And while its TBVPS growth was impressive over the last five years, the downside is its declining net interest margin shows its loan book is becoming less profitable. On top of that, its net interest margin makes it more difficult to reach positive operating profits compared to other bank businesses.

F.N.B. Corporation’s P/B ratio based on the next 12 months is 0.9x. This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are superior stocks to buy right now.

Wall Street analysts have a consensus one-year price target of $18.81 on the company (compared to the current share price of $16.94).